Loan defects found in mortgage application declined 1 point 2 percent from August to September, and is now 20 point 6 percent below the high point of risk October 2013, according to First American’s Loan Application Defect Index for September 2015 released Wednesday.
According to the Defect Index, defect and misrepresentation risk has fallen for the third consecutive month to a level reported back in May 2015, shifting gears from the upward trend during the first half of the year. In addition, the index has declined more than 3 percent during the last three months, it is also up 3 point 8 percent from the low point set in March 2015.
The Federal Open Market Committee wrapped up their October meeting Wednesday, concluding that the federal funds rate shall remain the same at the current 0 to 1/4 percent target range. Household spending and business fixed investment rose at solid rates in recent months, while the housing market continued to improve. On the downside, government officials saw net exports fall soft, job gains slow, and the unemployment rate held steady. In addition, inflation remains under the Committee's objective of 2 percent.